Introduction

Statutory financial statements

The chapters IFRS financial statements and Company financial statements contain the statutory financial statements of Koninklijke Philips Electronics N.V. (the ‘Company’).

Accounting policies applied

The financial statements of the Company included in this chapter are prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code. Section 362 (8), Book 2, Dutch Civil Code, which allows companies that apply IFRS as adopted by the European Union in their consolidated financial statements to use the same measurement principles in their company financial statements. The Company has prepared these Company financial statements using this provision.

The accounting policies are described in the section Significant IFRS accounting policies.

Subsidiaries are accounted for using the net equity value in these Company financial statements.

Presentation of Company financial statements

The balance sheet presentation deviates from Dutch regulations and is more in line with common practice in the US in order to achieve optimal transparency for Dutch and US shareholders.

Under this format, the order of presentation of assets and liabilities is based on the decreasing degree of liquidity, which is common practice in the US.

The income statement has been prepared in accordance with Section 2:402 of the Dutch Civil Code, which allows a simplified income statement in the Company financial statements in the event a comprehensive income statement is included in the consolidated statements.

Additional information

For ‘Additional information’ within the meaning of Section 2:392 of the Dutch Civil Code, please refer to the Auditor's report, the Auditor's report, and the section Proposed distribution to shareholders and note (70) Subsequent events.